Fla. Hotel Sells for $71.7Mln to Condo Converter

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Signature Communities, a Naples, Fla., homebuilder, has paid $71.67 million for the Vanderbilt Inn on the Gulf, a 147-room hotel in Naples, Fla.

Signature is expected to redevelop the unflagged property, which is slated to be 72 residential condominium units.

The property was acquired from a partnership, Vanderbilt Beach Associates, which was advised by Cohen Financial of Chicago.

Vanderbilt had hired Cohen in 1999 to explore strategic and financial alternatives for the property. At the time, however, Vanderbilt Beach was not ready to pull the trigger on a sale. So, working with Cohen, the partnership improved the property's entitlements, which included allowing for taller structures, among other things.

Two years ago, Cohen was formally tapped to offer the property for sale. Cohen specifically sought condominium converters because of the property's value to such developers. The property was placed under contract with Signature last year, nearly a year before final development plans were approved by municipal authorities. Since then, Signature has been pre-selling units to prospective buyers.

"We strategically targeted condominium developers who were focused on adding beach front properties to their portfolios," Rick Tannenbaum, managing director of Cohen, who spearheaded the transaction, said. "As a result, the sale achieved a record price for gulf-front land in Collier County."